Find all School-related info fast with the new School-Specific MBA Forum

It is currently 16 Sep 2014, 00:09

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Under the 1986 tax law, interest payments on a refinanced

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Current Student
User avatar
Joined: 29 Jan 2005
Posts: 5252
Followers: 23

Kudos [?]: 130 [0], given: 0

GMAT Tests User Reviews Badge
Under the 1986 tax law, interest payments on a refinanced [#permalink] New post 13 May 2005, 07:35
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Under the 1986 tax law, interest payments on a refinanced business loan are deductible only if the amount of the loan does not exceed the value of the business, the cost of refinancing, and any additional amount borrowed against the business to pay for tax or legal expenses.

(A) any additional amount borrowed against the business to pay for tax or legal expenses
(B) borrowing any additional amount against the business for payment of tax or legal expenses
(C) also borrowing any additional amount against the business to pay for tax or legal expenses
(D) any additional payment of tax or legal expenses that were borrowed against the business
(E) any additional payment borrowed against the business for tax or legal expenses
Director
Director
avatar
Joined: 11 Mar 2005
Posts: 726
Followers: 1

Kudos [?]: 22 [0], given: 0

GMAT Tests User
 [#permalink] New post 13 May 2005, 11:38
B - not concise and moreover making "the borrowing" the subject instead of payment.
C - also is not needed
D - number problem (has to be singular)

Between A and E, it is easy to pick. Since we are talking about the payment and not amount to pay for.

I will pick E
Intern
Intern
avatar
Joined: 21 Mar 2005
Posts: 8
Followers: 0

Kudos [?]: 0 [0], given: 0

 [#permalink] New post 13 May 2005, 19:56
Don't you think guys that 'amount borrowed against the business" is better that 'payments borrowed against the business' as payments are not borrowed.
Director
Director
User avatar
Joined: 18 Apr 2005
Posts: 551
Location: Canuckland
Followers: 1

Kudos [?]: 7 [0], given: 0

GMAT Tests User
 [#permalink] New post 13 May 2005, 20:23
Imo A is indeed parallel and so is E but 'payment borrowed'??? I'd choose A too.
Manager
Manager
avatar
Joined: 07 Apr 2005
Posts: 82
Location: Lontano da dove
Followers: 1

Kudos [?]: 0 [0], given: 0

 [#permalink] New post 13 May 2005, 21:08
I choose A.

(A) any additional amount borrowed against the business to pay for tax or legal expenses

(E) any additional payment borrowed against the business for tax or legal expenses

The concept of "deducting only if the amount of the loan does not exceed...the additional payment borrowed against the business," seems a bit awkward. But then again, I have seen some pretty strange stuff from the test-prep folks.
Senior Manager
Senior Manager
avatar
Joined: 10 Nov 2004
Posts: 294
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
 [#permalink] New post 13 May 2005, 22:07
Can someone refute D.
I donot find A,D,E much different.
Current Student
User avatar
Joined: 29 Jan 2005
Posts: 5252
Followers: 23

Kudos [?]: 130 [0], given: 0

GMAT Tests User Reviews Badge
 [#permalink] New post 14 May 2005, 18:43
OA is A.

No OE yet...
Director
Director
avatar
Joined: 03 Nov 2004
Posts: 870
Followers: 1

Kudos [?]: 8 [0], given: 0

GMAT Tests User
 [#permalink] New post 15 May 2005, 02:42
Isn't A wordy becos of "any additional amount borrowed against the business to pay for tax or legal expenses"
  [#permalink] 15 May 2005, 02:42
    Similar topics Author Replies Last post
Similar
Topics:
5 Under the 1986 tax law, interest payments on a refinanced nitya34 21 21 Mar 2009, 10:25
Under the 1986 tax law, interest payments on a refinanced joemama142000 8 24 Nov 2005, 18:56
Under the 1986 tax law, interest payments on a refinanced macca 11 28 Aug 2005, 02:01
Under the 1986 tax law, interest payments on a refinanced GMATT73 2 27 Apr 2005, 08:10
Under the 1986 tax law, interest payments on a refinanced gayathri 6 16 Jan 2005, 17:51
Display posts from previous: Sort by

Under the 1986 tax law, interest payments on a refinanced

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.